Lake City/NFBA News

City
Manager Wendell Johnson explains his plan and letter
from the North Florida Broadband Authority to the CRA
Advisory Committee. City Councilwoman Moses is to his
right and CRA Director Jackie Kite is to his left.

By Stew Lilker

LAKE
CITY, FL – Last night Lake City, City Manager Wendell
Johnson surprised Lake City's Community Redevelopment
Agency with another scheme to buy and renovate the Vann
family's Powers Building on Main Street. This time with
the troubled North Florida Broadband Authority. City Manager
Johnson is on the Board of Directors of the NFBA and has
said he visits with them about three times a week.

Last year City Manager Wendell Johnson was blown off
by the Lake City Chamber of Commerce and the Historical
Society in his attempt to acquire the Vann family's
Powers Building for them. At that time, City Manager
Johnson's idea was to have the City buy and renovate the
building, which is now just a shell, and have the two
groups take it over and sustain it. The deal never got
off the ground. Last night Mr. Johnson explained that
problem this way: "They could not envision the same
things that I was envisioning... It was the fear of the
unknown."

City Manager Johnson hatches new scheme

Now,
City Manager (CM) Johnson has hatched a
new scheme for the Vann's Powers Building.

On February 15, 2012, the North Florida Broadband
Authority's Interim General Manager, Richelle Sucara,
sent a letter to CM Johnson which began: "I am pleased
to tell you that the North Florida Broadband Authority
(NFBA) is very excited about discussing the possibility
of renovating the Powers Building located on 600 N.
Marion St. with you."

City Manager Johnson is a member of the Board of
Directors of the NFBA. He has mentioned that he visits
the NFBA about three times a week.

The North Florida Broadband Authority has never
publically discussed the issue of the Powers Building.

After holding the letter for almost two weeks, City
Manager Johnson released the NFBA letter to the CRA
Advisory Committee (the Committee) at last night's
meeting.

Earlier in the day, CM Johnson attended a NFBA
meeting. The issues of space were brought up at that
meeting. No one from the Cadre of the NFBA mentioned a
word about the Powers Building. Lake City's City Manager
sat silent. During the NFBA's discussion the letter was
not mentioned by Interim General Manager Sucara, nor
NFBA Chairman Tommy Langford, nor NFBA Vice Chair Pat
O'Neal, nor NFBA Project Manager
Donny Lort, who recently falsified his resume to the
NFBA and has had Badges of Fraud pinned on him by a
Federal Judge.

City Manager Johnson told the CRA Committee, "I have
spoken with the Chairman of the Board and I have spoken
with the General Manager and the NFBA is looking for a
permanent location."

CM Johnson keeps the facts from the Committee

The
NFBA has no money, no revenue, no business plan and no
customers, facts of which Lake City Manager Wendell
Johnson are well aware.

CM Johnson proposed that "The City would acquire the
building. The City would bear the cost of renovation...
We would be the go between... They would do it directly
with the current owner, which is Mark Vann."

CM Johnson said the building was appraised at
$152,000 and has a code enforcement lean against it of
$5,000. The building is in probate.

CM Johnson explained, "The City Council would have to
fund the building." He wasn't sure if the deal with the
NFBA would be a grant or they would have to pay the
money back.

CM Johnson said, "The NFBA would be responsible for
carrying out the redevelopment process." According to CM
Johnson, "The City would pay for the construction
activity and at the time the NFBA goes operational or
sustained, they would pay the City back for the
redevelopment costs."

The NFBA Board, who doesn't know a thing about this,
would have to approve it.

CM Johnson explained, "That keeps the City from
having to own the building. That keeps the City from
having to bear the competitive process for
redevelopment. We [the City] would just be the funding
agency."

CM Johnson Misrepresents NFBA Warehouse Rental Costs

City Manager Johnson then misrepresented the long
term rental costs now being paid by the NFBA.

The NFBA is presently on a $5,000 month to month
warehouse lease in which it is storing its equipment
during the NFBA build out. It is common knowledge and
has been discussed at the NFBA that the warehouse will
not be needed once all the NFBA's equipment is
installed. That was the reason for the month to month
lease, a fact CM Johnson is familiar with.

CM Johnson said the financial position of the NFBA
will not be known until the first quarter of 2013. It is
at this time that the NFBA will have to be producing
revenue, instead of living off grant money from the
federal government and bank loans from TD Bank. The NFBA
is paying TD Bank 5% interest.

City Manager Johnson summarized his deal this way, "In
essence the City will be giving them a no interest
construction loan. Until the loan is paid off we are the
mortgage holder."

City Attorney Darby weighed in: Something should be
done to the building. As you know we are in some very
trying times. Economically the economy is bad and
particularly as it relates to real property. Private
parties are pushed pretty hard. The availability of
capital has been restricted... I do not believe that any
private investor would do anything with that building.
The economics are just not there. The feasibility is
just not there."

Epilogue

CM Johnson said the Community Redevelopment Agency
does not have money to do the financing. If they [NFBA]
fail, "Private investors are not going to go down and
buy this building and do anything with it."

The CRA Advisory Committee voted to proceed with negotiations
and discussions with the NFBA.

It is not clear when the NFBA Board of Directors will
be told about this White Elephant deal with the City of
Lake City.